Campaign Finance Bibliography

Special interest money enters politics in a number of ways: through bribes, campaign
contributions, or lucrative post-office employment for politicians. This article presents
a formal model that examines these different types in a single framework. It endogenously
determines whether a politician implements an interest group’s preferred policy,
and if so in what way she is compensated. The analysis highlights how substitution effects
limit the effectiveness of special interest regulation. In particular, it demonstrates
the growing importance of the “revolving door” in countries with strict anti-corruption
laws. This helps explain why interest groups continue to be able to exert influence in
most countries. I also endogenize special interest regulation and show the conditions
under which voters and party members can pressure elite politicians into self-imposing
stricter laws.